Don’t interfere with the markets
Jun 6th, 2008 by brianschettler
From CNN on rising oil today:
Recent data show high prices have led consumers to cut their gasoline consumption. Meanwhile, many Asian nations are cutting fuel subsidies, effectively raising prices, which is expected to further dampen demand.
Artificially lower prices means people will use more of a commodity, driving up demand. And when there’s not enough supply, it means higher prices for everyone else not receiving government subsidies. See this list of global gas prices from 2005:
Saudi Arabia Riyadh $0.91 Kuwait Kuwait City $0.78 Egypt Cairo $0.65 Nigeria Lagos $0.38 Venezuela Caracas $0.12